Put-Call Parity Is Based on Which One of the Following

question 33

Multiple Choice

Put-call parity is based on which one of the following principles?

• A)Binomial tree
• B)Time value of money
• C)No arbitrage
• D)Normality of returns

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Definitions:

Accountability

The obligation of individuals or organizations to account for their activities, accept responsibility for them, and disclose the results in a transparent manner.

Nonprofit Organizations

Entities that operate for a purpose other than generating profit, often focusing on addressing social, educational, charitable, or religious objectives.

Logic Model

A systematic and visual way to present the relationship between the resources, activities, outputs, and expected outcomes of a program or project.

Financial Management

The strategic planning, directing, monitoring, organizing, and controlling of the monetary resources of an organization.